The Secretary is authorized to establish and carry out a
black lung insurance program which will enable operators of coal
mines to purchase insurance covering their obligations under
section 932 of
this title.
(b) Non-availability of other insurance coverage
The Secretary may exercise his or her authority under this
section only if, and to the extent that, insurance coverage is
not otherwise available, at reasonable cost, to operators of coal
mines.
(c) Agreements with coal mine operators; reinsurance
agreements
(1) The Secretary may enter into agreements with operators
of coal mines who may be liable for the payment of benefits under
section 932 of
this title, under which the Black Lung Compensation Insurance
Fund established under subsection (a) of this section
(hereinafter in this section referred to as the 'insurance fund')
shall assume all or part of the liability of such operator in
return for the payment of premiums to the insurance fund, and on
such terms and conditions as will fully protect the financial
solvency of the insurance fund. During any period in which such
agreement is in effect the operator shall be deemed in compliance
with the requirements of section 933 of
this title with respect to the risks covered by such agreement.
(2) The Secretary may also enter into reinsurance agreements
with one or more insurers or pools of insurers under which, in
return for the payment of premiums to the insurance fund, and on
such terms and conditions as will fully protect the financial
solvency of the insurance fund, the insurance fund shall provide
reinsurance coverage for benefits required to be paid under
section 932 of
this title.
(d) Terms and conditions of insurability
The Secretary may by regulation provide for general terms and
conditions of insurability as applicable to operators of coal
mines or insurers eligible for insurance or reinsurance under
this section, including -
(1) the types, classes, and locations of operators or
facilities which shall be eligible for such insurance or
reinsurance;
(2) the classification, limitation, and rejection of any
operator or facility which may be advisable;
(3) appropriate premiums for different classifications of
operators or facilities;
(4) appropriate loss deductibles;
(5) experience rating; and
(6) any other terms and conditions relating to insurance or
reinsurance coverage or exclusion which may be appropriate to
carry out the purposes of this section.
(e) Premium schedule studies and investigations
The Secretary may undertake and carry out such studies and
investigations, and receive or exchange such information, as may
be necessary to formulate a premium schedule which will enable
the insurance and reinsurance authorized by this section to be
provided on a basis which is (1) in accordance with accepted
actuarial principles; and (2) fair and equitable.
(f) Regulations relating to premium rates
(1) On the basis of estimates made by the Secretary in
formulating a premium schedule under subsection (e) of this
section, and such other information as may be available, the
Secretary shall from time to time prescribe by regulation the
chargeable premium rates for types and classes of insurers,
operators of coal mines, and facilities for which insurance or
reinsurance coverage shall be available under this section and
the terms and conditions under which, and the area within which,
such insurance or reinsurance shall be available and such rates
shall apply.
(2) Such premium rates shall be (A) based on a consideration
of the risks involved, taking into account differences, if any,
in risks based on location, type of operations, facilities, type
of coal, experience, and any other matter which may be considered
under accepted actuarial principles; and (B) adequate, on the
basis of accepted actuarial principles, to provide reserves for
anticipated losses.
(3) All premiums received by the Secretary shall be paid
into the insurance fund.
(g) Black Lung Compensation Insurance Fund
(1) The Secretary may establish in the Department of Labor a
Black Lung Compensation Insurance Fund which shall be available,
without fiscal year limitation -
(A) to pay claims of miners for benefits covered by
insurance or reinsurance issued under this section;
(B) to pay the administrative expenses of carrying out the
black lung compensation insurance program under this section; and
(C) to repay to the Secretary of the Treasury such sums as
may be borrowed in accordance with the authority provided in
subsection (i) of this section.
(2) The insurance fund shall be credited with -
(A) premiums, fees, or other charges which may be collected
in connection with insurance or reinsurance coverage provided
under this section;
(B) such amounts as may be advanced to the insurance fund
from appropriations in order to maintain the insurance fund in an
operative condition adequate to meet its liabilities; and
(C) income which may be earned on investments of the
insurance fund pursuant to paragraph (3).
(3) If, after all outstanding current obligations of the
insurance fund have been liquidated and any outstanding amounts
which may have been advanced to the insurance fund from
appropriations authorized under subsection (i) of this section
have been credited to the appropriation from which advanced, the
Secretary determines that the moneys of the insurance fund are in
excess of current needs, he or she may request the investment of
such amounts as he or she deems advisable by the Secretary of the
Treasury in public debt securities with maturities suitable for
the needs of the insurance fund and bearing interest at
prevailing market rates.
(h) Annual report to Congress
The Secretary shall report to the Congress not later than the
first day of April of each year on the financial condition of the
insurance fund and the results of the operations of the insurance
fund during the preceding fiscal year and on its expected
condition and operations during the fiscal year in which the
report is made.
(i) Authorization of appropriations
There are authorized to be appropriated to the insurance
fund, as repayable advances, such sums as may be necessary to
meet obligations incurred under subsection (g) of this section.
All such sums shall remain available without fiscal year
limitation. Advances made pursuant to this subsection shall be
repaid, with interest, to the general fund of the Treasury when
the Secretary determines that moneys are available in the
insurance fund for such repayments. Interest on such advances
shall be computed in the same manner as provided in subsection
(b)(2) of section 934a of
this title.